VIX hits lows last seen in May 2008, Bullish Trading in the Metals, Alcoa ahead of earnings, Bullish on a bearish fund, "Free" trade in MOT?


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Pepsico shares are off 40c to $60.60 and option volume is 3x the daily average. Driving the activity is buying in the April $65 call which has traded some 15,000 contracts against prior open interest of 8,563 contracts. The volume is 78% on the ask including a three 3,000+ contract blocks at the 65c asking price. Also, the Jan. $60 put has traded 4,600 contacts mostly on the bid but this might be closing as prior open interest was over 15,000 contracts. The chart presents reasonable support at the $60 level but also left a gap down at $63 so might be bound by sideways action in the near term.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Dryships (DRYS) shares have been grinding higher today, recently up 30 cents to $6.77 amid relative strength in the dry bulk shippers Friday (SFL, TK, TNP, GNK, DSX). In the options market, volume has been impressive, with 56K calls and 6,500 puts traded. While action is scattered across a number of different contracts (Jun 7, Jan 6, Mar 7, Jan 7.5, Jan11 10s), Feb 7 calls are the most activves. 15.9K traded and, with about two thirds trading at the ask, it looks like buyers are dominating the action. No news today. DRYS saw a pop Tuesday on chatter about new contracts with two larger drillships — still unconfirmed.

Manitowac (MTW), the Manitowac MI farm and construction machinery company, is rallying to session highs, up 57 cents to $13.10. Share have rallied every day this week and up 31.9 percent since last Friday. Now options action is picking up as well. Volume is running 2X the average daily, with 7,925 calls and 665 puts traded. The action is scattered across Jan and Feb calls at the 12.5, 13, and 14 strikes. Some players are likely closing out positions in the front month after the big move. Others appear to be opening new positions in the Feb 14s in anticipation of additional upside. No news on the stock.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Select Sector Technology (XLK) is up 3 cents to $22.92 and an investor collects 15 cents on Jan 23 calls, 24000X. More than 50K have now traded vs. 84K in open interest. So this might be closing trades ahead of next week’s expiration. That is, since only 5 and half trading days remain until these options expire, and the contracts is currently 8 cents out-of-the-money (23 – 22.92), these premium sellers are likely liquidating positions to salvage the 15 cents of time value that still remains.

Tiffany shares are off 50c to $46.30 but still up some 7% for the week. The jewelry retailer jumped to a 52-week high yesterday and this morning it looks like protective put action is being taken. The Jan. $46 puts were purchased 2,600 for the 77c asking price the Jan. $43 and $42 puts were sold 1,300 times each at 13c and 11 cents respectively. The three leg spread cost a 65c net debit